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2/6/2008
SocGen reveals how it was duped in trading scam

By Crispian Balmer and Tim Hepher Sun Jan 27, 12:36 PM ET

PARIS (Reuters) - French bank Societe Generale defended its handling of the world's biggest trading scandal on Sunday, but admitted its risk systems had failed to detect a 50-billion-euro ($73.3 billion) market bet by a lone trader.

Prosecutors said the trader, named as 31-year-old Jerome Kerviel, would remain in custody until Monday after handing himself in on Saturday, and was co-operating with a probe into how the bank ran up $7 billion losses on the illicit deals.

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